South Korea signs oil deal with Kuwait amid Middle East conflict fears

On October 31, South Korea signed a strategic agreement on crude oil reserves with Kuwait to store 4 million barrels of oil from this Middle Eastern country in the industrial city of Ulsan (South Korea).

According to The Korea Times , the move is an important step to ensure South Korea's energy security amid escalating tensions in the Middle East. The agreement was signed between the Korea National Oil Corporation (KNOC) and the Kuwait Petroleum Corporation (KPC) on October 31.

CEO of Korea National Oil Corporation Kim Dong-sub (left) and Chairman of Kuwait Petroleum Corporation Shaikh Nawaf Saud Al-Sabah shake hands in Kuwait on October 31, 2024.

PHOTO: SAUDI GULF PROJECTS

"Amid escalating tensions in the Middle East following the Israel-Iran tit-for-tat retaliation, the agreement will allow South Korea to proactively secure crude oil from the region and enhance its energy security preparedness," KNOC said in a statement.

Under the deal, KNOC will store the oil barrels in the industrial city of Ulsan, where they can be supplied domestically in the event of a global energy crisis.

For Kuwait, the deal provides a secure storage hub in the region, ensuring stable supply to other Asian customers.

Previously, KNOC signed similar agreements with Saudi Arabia and the United Arab Emirates (UAE), with a total storage capacity of up to 13.3 million barrels of crude oil in South Korea.

With 72 percent of South Korea's crude oil needs dependent on the Middle East, the deals with the three top partners will contribute significantly to ensuring national energy security, the South Korean industry ministry said.

Source: https://thanhnien.vn/han-quoc-ky-hop-dong-dau-khi-voi-kuwait-giua-lo-ngai-xung-dot-o-trung-dong-185241101072741011.htm